We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Inventory Management Problems Essay Sample

The whole doc is available only for registered users OPEN DOC

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Inventory Management Problems Essay Sample

President Gish brings the meeting to order. “Look at these air freight bills! Here‟s one for R955—more than the damn part is worth! I know, I checked! These things are murdering us. You must realize that in our business today, transportation has great cost-cutting potential!”

The Traffic manager‟s response: “I know that freight bills have risen 30 percent in the last six months, but what can I do? Miss Glass here is cutting inventories so hard that she never has anything in stock. Her short lead times force me to use airfreight. And the way she spreads small orders, I almost never find a way to consolidate them to get volume rates. And I‟m having the same problems on outgoing shipments. I‟m caught in a two-bladed buzz saw!”

Supply manager Joan Glass interrupts to say, “Harold, we‟re operating on low inventories because we save money doing it. Many times airfreight is the only way I can be sure of getting what I need on time.”

Production manager Holtz comments, “And when I need something, I need it. Take spares. This „downtime‟ is a very expensive proposition, and we all know it. Further, by the time Miss Glass here gets me needed production materials, we are so late that the only way to meet delivery dates is with overtime and the use of air freight.” Marketing manager Levi joins in, “Whatever the trouble, it seems there must be a way to get an efficient pipeline. If Heinrich is late, then I am late. We are losing our image as a reliable supplier. Soon, we‟ll be losing sales!”

Traffic manager Tracks defends himself by saying, “I don‟t want to seem bitter, but it looks like I‟m getting the short end of the stick.” President Gish interrupts to say, “No more excuses. I want action! Costs must come down.” Supply manager Glass defends herself by saying; “The lead-time problem goes right back through production and eventually to Harold‟s sales forecasts. I need earlier information.” Marketing manager Levi says, “I have to promise prompt delivery. We all know that the problem is at the other end.”

Production manager Holtz suggests, “Like I‟ve been saying for a long time, we should combine supply and traffic and get them closer to production.” At this point, supply manager Glass sounds frustrated when she says, “Heinrich, we‟re right back where we started. We need lower freight costs, but at the same time we must keep inventory down.”

Director of finance Stein says, “Inventory carrying cost is over 30 percent a year. I think that Joan has done a great job. But I do agree with Mr. Gish that transportation costs are way over budget.”

President Gish concludes the meeting by saying, “Heinrich‟s idea is a possibility. We could create a materials management setup. I understand it is the coming thing. I will give each of you one week to put all your ideas on paper. Be prepared to deliver your reports at our next meeting. I want us out of this fix … and soon!”

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Peculiarities of various assignment types

The educational process is diverse and full of interesting writing tasks which help students develop their academic abilities. Different assignments types are created by professionals in order to enhance students’ level of analytical, critical and writing skills and to vary the learning process. As a student, you will encounter numerous tasks of diverse complexities throughout your student life. Sometimes, maybe, too complicated! They have different peculiarities, structural...

Making decisions in health and social care

Critically analyses the concepts, features, and importance of costs and accounting in making decisions in health and social care Cost accounting is a method used in accounting to capture a company’s or organisation’s production costs. It assesses the input costs of every step in production, fixed costs like depreciation of capital equipment. Cost accounting measures and records costs individually then compare the input results via...

Сhildren development

Physical development 7-12 years By the age of 7 a child enjoys things such as bike riding and rollerblading they are now able to tie and untie shoelaces without adult help, they are now starting to understand what rules are and are able to follow simple rules. At 8-12 years a child improves the physical skills that they have already developed and start to see...

Forex international trading market

Introduction Forex exchange is on the rise in Namibia; resulting in more people wanting to learn how to trade to try to increase their income so that they can enhance their standard of living. Forex Foreign exchange identifies the process of converting domestic currency into international banknotes at particular exchange rates (Bofah, 2017, para.1). As the number of foreigners in Namibia is increasing, more Namibians...

Aristotelian idea of God

This image produced in 1544 shows emerging's of the Judeo-Christians and Aristotelian's traditions. Aristotle was very interested in the idea of motion and said “The world is in a constant state of motion and change”. An example of how the world is changing is the growth of trees and plants. Aristotle believed in a prime mover, which is the being which creates change in the...

Get Access To The Full Essay
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member